Measuring the Social Voice of the Customer (Earned Media)

Econometrics Approach

Client Situation

1) Low cost airline has found it’s profitability squeezed in the last year.

2) Media spending has increased threefold – There is a need for accurate measurement and accountability. Up to now,

everything has been based on “gut feel”.

3) Online customer experience reviews on SKYTRAX are becoming increasingly important – can we measure the impact they

have on flight bookings?

4) Key question: how can we optimise media spending to ensure it is geared for bottom-line growth.

1) Undertake Econometric analysis to quantify the impact of key business growth drivers including media and marketing.

2) Measure the impact of social/online customer reviews on flight bookings.

3) Assess the relationship between media spending and business constraints such as seat availability (Passenger Load Factor)

4) Optimise spending such that we can reallocate media investments to drive future growth in flight bookings.

Our Approach

Developing the airline brand Semantic Engagement Index SEITM

SKYTRAX is an online airline quality review site

Mine social media conversations and online customer reviews

Apply our Linguistics approach to textual corpus

Distil what is important based on engagement scoring

Develop a trended SEI metric for the airline brand.

Score Themes and Topics

Value

Overhead lockers

Food Leg room Friendly Staff

Knowledge Found Resolution

Quality Baggage Allowance

Inflight Experience

Customer Service

Environment

SEI scored Topics

SEI Themes

Consumer Experience and Engagement

Offline Media

Digital Media

TVRadioOutdoorPrint

Digital display networkDigital display premiumDisplay RetargetingPaid Search brandedPaid Search generic

SeasonalityMacro economic

Retail

Number of routes addedPassenger load factorFlight PricesSEO - Website

Net Flight

Bookings

The impact of media on sales is

‘amplified’ via earned social media.

Modelling the Earned Media Impact on Sales Value

Overhead lockers

Food Leg room Friendly Staff

Knowledge Found Resolution

Quality Baggage Allowance

Inflight Experience

Customer Service

37% of bookings driven by: Macro-factors Flight Prices Seasonality JetFuel Prices Exchange Rates Ashcloud Olympics

Incremental Media Contributions

Digital Media is the dominant driver of this

airlines’s business, although it previously didn’t

know how important it really was.

Passenger Load Factor (3%)

Number of routes added (8%)

Baseline Sales 37%

Media Contribution 52%

Generic Paid Search (0.3 %)

Digital Premium Display (2.4 %)

Generic Paid Search (6.0 %)

TV (7.2 %)

Digital Display Retargeting (7.2 %)

Digital Video on Demand (3.6%)

Google Trends, Digital Trends, SEO (8.4%)

Branded Digital Paid Search (0.3 %)

The media contributions include within them the

amplification effect through earned media

customer comments taken from facebook, twitter

and SKYTRAX. We estimate this Amplified impact

to stand at around 19% (see next slide)

Media Channel Current Spend

(Last 12 months)

Modelled

TOTAL

Revenue

Contribution

(last 12

months)

Direct

ROI Per

£1 Spent

ROI Per £1

Spent with

SEI

Amplified

Earned

Media

Amplifica

tion

Effect

(SEI) F - E

%

Amplifica

tion

(G/E)

SEI

Amplificatio

n Revenue

Impact

Direct

Revenue

Impact

Generic Digital Paid Search £2,173,913 £350,000 £0.11 £0.16 £0.05 29% £102,000 £248,000

Digital Premium Display £10,869,565 £3,280,000 £0.29 £0.30 £0.01 3% £97,187 £3,182,813

Digital Display Network £8,695,652 £8,200,000 £0.87 £0.94 £0.08 8% £669,224 £7,530,776

TV £8,695,652 £9,840,000 £0.87 £1.13 £0.26 23% £2,252,344 £7,587,656

Digital Display Retargetting £6,521,739 £9,840,000 £1.32 £1.51 £0.19 12% £1,218,670 £8,621,330

Digital Video on Demand £2,173,913 £4,920,000 £2.00 £2.26 £0.26 11% £561,381 £4,358,619

Google Trends, Digital Website SEO £4,347,826 £11,480,000 £2.41 £2.64 £0.23 9% £1,000,853 £10,479,147

Branded Digital Paid Search £2,173,913 £22,960,000 £7.01 £10.56 £3.55 34% £7,724,211 £15,235,789

Total £45,652,174 £70,870,000 £1.55 £1.85 £0.30 £13,625,870 £57,244,130

Marketing ROI per Pound spent: Earned Socialamplifies overall media ROI by +19%

Total amplified impact from SEI

Marketing ROI per Pound spent

Full Marketing Spend Optimisation

Spending optimization finds +4% more revenue by reallocating the current £45.6M budget towards more branded paid search.

£45,652174 £45,652174

9

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+31% Lift

+51% Lift

+65% Lift

+38% Lift

Driving Growth via Integrated Media Measurement

The marketing mix is like a symphony generating more than the sum of its parts

Earned Social Media Content Drivers (19% Amplification)

Bo

oki

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Inflight experience content drivers made the largest contribution to flight bookings.

What did the client do as a result of this insight?

Media & Business Planning Changes

Re-allocated planned marketing spend towards more effective channels.

Integrated campaign execution as per media synergies.

Message refinement: focusing on comfort (leg room) and food (end of no frills) on effective channels with social platforms.

Other Operational Changes

Change of policy on baggage allowance (increased from 15kg to 22Kg per customer one way per bag – up to 3 bags max)

Review in flight cabin crew training procedures

About UsThe Semantic Engagement Index SEITM is a product of Stance-Shift AnalysisTM*. Published and peer

reviewed, Stance Shift AnalysisTM reveals what really matters to the consumer. This is the underpinning of

our approach. Stance-Shift measures consumers’ verbal shifts in positioning as they talk, where the “shift”

infers a landmark change in emotion, intensity, appraisal and commitment towards a subject (brand,

topic, campaign or concept)

This approach enables us to solve for what others miss: Size, Trend and New Concepts.

Two levels of scoring:

1) Emotion and Commitment is understood through engagement scoring – far superior to simplewords/comment frequency.

2) Graded tonality scoring (the + and -) to understand negative and positive sentiment.

The Semantic Engagement Index SEITM

integrates our Stance Shift measurement engine to power

consumer insights and advanced analytical modeling.

Using Stance Shift AnalysisTM for consumer insights and modelling

Stance Analysis: Social cues and attitudes in online interaction, Mason, et al, Linguistic Insights

Fusing SEITM based language measurement with advanced analytics to understand competitive brand positioning, content drivers and reputation.

Using known tools to listen and monitor high level consumer conversations.

Measure language based on engagement and importance through the Semantic Engagement Index (SEITM).

Listening,Monitoring and basic Sentiment

MeasuringLanguage for

brand insights

SocialMedia Advanced

Analytics

Earned Media linkage to sales

Applying a trended SEITM

within Media Mix Modelling to monetise Social Voice of the Customer (earned social media) alongside all other media and quantify any synergistic effects.

Extend the Value of Social Media Insights

BLA Social Insights, Analytics and Sales Linkage Framework

Michael Wolfe

CEOBottom Line AnalyticsE: mjw@bottomlineanalytics.comM: (770).485.0270

www.bottomlineanalytics.com

Masood Akhtar

Managing Partner, (EMEA)Bottom Line AnalyticsE: ma@bottomlineanalytics.comM: +44 7970 789 663

www.bottomlineanalytics.com